The Swiss insurance market is in remarkably robust shape. Capitalization is solid, available insurance capacity is high in many lines, and competition is driving attractive terms in many areas.

On closer inspection, however, the picture is more nuanced. In individual business areas, rising claims costs are leading to adjustments in pricing and risk selection. At the same time, technological developments and new risks are creating additional opportunities for new insurance, prevention and advisory solutions.

This is shown by the Aon trend barometer 2026-2027, which examines the most important developments in the Swiss primary and reinsurance market.

An Insurance Center of International Importance

"The Swiss insurance market is still very competitive," explains Pascal Mayerhofer, Chief Broking Officer at Aon Switzerland, in an interview with finews.

The industry has considerable expertise and can also absorb very large risks. Measured against economic output, the Swiss insurance market is exceptionally large.

However, the Swiss insurance center should not rest on its laurels. Technological change, international competition and new regulatory conditions could increasingly call established business models into question. 

These changes are becoming particularly clear in five areas:

1. Cyber Insurance: Only One in Ten Companies is Insured

The Aon trend barometer provides a particularly striking figure in the area of cyber insurance: according to Aon, only around 10 percent of companies have corresponding insurance coverage.

That leaves a significant protection gap, even though cyberattacks are increasing and companies are becoming ever more dependent on digital infrastructure.

At the same time, market conditions are improving for policyholders. Additional capacity and intense competition have put pressure on premiums. The decline continued in the first quarter of 2026, albeit less pronounced than in the previous year.

The threat situation remains tense. Aon refers to around 85 active ransomware groups, which are increasingly targeting small and medium-sized companies as well.

Insurance Alone is Not Enough

"I am surprised that market penetration for cyber insurance is still so low," says Mayerhofer. 

However, he warns against viewing cyber insurance solely as classic risk transfer: "Pure risk transfer is only a small part of the entire ecosystem," he says. 

Companies must first deal intensively with their actual risks. This includes not only hacker attacks on their own IT infrastructure, but also possible business interruptions caused by cyber incidents at suppliers and service providers.

Mayerhofer sees significant catching-up to do, especially among small and medium-sized companies. Many businesses have recognized the risks in principle, but are still dealing too little with the concrete consequences of a successful cyberattack.

2. New Competition From London

One development that Mayerhofer believes has so far been underestimated concerns the international opening of the Swiss insurance market.

At the center is the so-called Berne Financial Services Agreement, or Berne Agreement, between Switzerland and the United Kingdom.

The agreement expands access for Swiss companies to international insurance capacity under certain conditions.

This allows British insurers in the covered business areas to serve Swiss customers more directly without necessarily having to establish a traditional local branch structure. 

For the Swiss insurance market, this has far-reaching consequences.

Local and international solutions become more comparable. "We are already seeing Swiss insurance solutions increasingly being compared with offerings from London," says Mayerhofer. 

This trend could intensify, especially for companies with international operations.

As a result, Swiss insurers and brokers no longer have to compete solely with domestic rivals, but increasingly also with international providers.

What makes this particularly interesting is the different contract structures. While Swiss insurance products are traditionally based on local conditions, international markets often work with Anglo-Saxon contract wordings.

This opens up additional options for customers, but also raises the bar for advisory services and risk assessment.

Mayerhofer points out that international insurance buyers are often not overly concerned about working with foreign providers. What matters to them is the quality of coverage, the terms and international comparability.

For the Swiss insurance market, the agreement could therefore become an important driver of greater international comparability and additional solution options.

3. Artificial Intelligence: Insurers Are Entering New Territory

Artificial intelligence (AI) is changing the insurance industry on several levels.

On the one hand, it enables more efficient processes, automated claims handling and more precise risk models. On the other, the use of AI creates entirely new liability and operational risks.

The Aon trend barometer cites algorithmic errors in decision-making, discrimination, data protection breaches and infringement of intellectual property rights, among other things.

New Liability Questions Arising From Artificial Intelligence

Mayerhofer sees the industry facing a particular challenge here: how can risks be insured for which there is hardly any historical claims data?

"The development of artificial intelligence is progressing incredibly fast. For many AI-related risks, there is still a lack of extensive historical claims data. That makes scenario analysis, clear governance structures and the ongoing development of assessment models all the more important," says Mayerhofer. 

It becomes particularly demanding when AI systems make decisions autonomously or are directly integrated into operational business processes.

What happens, for example, if a supplier's AI system fails and a company’s production comes to a standstill as a result? Who is responsible, and which insurer covers the loss?

These questions have not yet been definitively answered.

Analytics And Advisory Services Create New Options For Action

Aon is developing analytical approaches to capture the risks arising from the use of artificial intelligence more systematically. The focus is on cyber and liability risks, operational dependencies, governance and regulatory requirements.

Mayerhofer sees this as an opportunity for the insurance industry as well.

The industry must develop new coverage concepts instead of merely transferring existing products to new technologies.

At the same time, AI is also changing the relationship between insurers, brokers and customers. Policyholders are now much better informed and expect faster answers as well as more in-depth advice.

4. Motor Vehicle Insurance in Transition

Motor vehicle insurance is traditionally one of the key business areas for Swiss insurers. Rising claims costs and technological changes are driving a fundamental further development of pricing, product and risk management models.

According to Aon, average premiums have risen by around 20 percent since 2019. The main cost drivers include more expensive spare parts, more complex repairs due to modern vehicle technologies, and more frequent damage caused by hail and heavy rain.

"Rising claims costs, more complex vehicle technologies and weather-related damage are sustainably changing the cost structure of motor vehicle insurance. Insurers are responding with more differentiated pricing and risk management approaches," says Pascal Mayerhofer, Chief Broking Officer at Aon Switzerland.

For risks with increased claims frequency or above-average claim severity, this means a more precise assessment. Depending on the risk profile, insurers respond with adjusted premiums, higher deductibles or changed coverage structures. Transparent claims data and effective prevention and fleet management measures are therefore becoming even more important.

Dynamic Premium Models as a Possible Response

New business models could further change the industry. These include vehicle subscriptions, new leasing models and, in particular, the increasing use of telematics data.

Mayerhofer expects insurers to distinguish more strongly between different driving profiles in future. Driving behavior, geographic risks and the actual use of a vehicle could increasingly be incorporated into premium calculations.

A vehicle that is mainly on the road at night or in areas particularly prone to losses could therefore be insured differently from a car with a lower risk profile.

Autonomous driving is also likely to change the market in the long term. As automation increases, not only do claims frequencies shift, but so do liability issues and the foundations of risk assessment. Insurers, brokers and companies therefore need to continually adapt their existing models to technological developments and new usage concepts.

5. Reinsurance: Abundant Capital is Driving Prices Down

Aon paints a comparatively positive picture of the international reinsurance market.

Reinsurers have strong capitalization and are benefiting from good business results. At the same time, competition is increasing.

In the area of natural catastrophe reinsurance in particular, the additional capital is pushing prices down.

For primary insurers, this generally means more favorable conditions when transferring large risks.

More Competition For Natural Catastrophe Risks

The Aon trend barometer distinguishes between two important business areas.

In treaty reinsurance, high capacity and additional providers are creating increasing price pressure. This development is particularly pronounced for natural catastrophe risks.

Facultative reinsurance, in which individual risks are insured on a case-by-case basis, is also benefiting from strong demand and intense competition. The London market in particular is showing growth-oriented behavior.

Mayerhofer confirms this trend.

"We are seeing more favorable terms, especially in natural catastrophe reinsurance."

He expects the generally favorable market conditions to continue in the short term. However, a major natural catastrophe event could quickly change the situation.

For the Swiss insurance industry, the development is fundamentally positive. More favorable reinsurance capacity can lower the cost of risk protection and create additional underwriting capacity.